23 January 2025 - Shenhua's coal-based PP and PE Auction Results
Shenhua has reportedly exhausted its January auction allocation, leaving only 900 tons of coal-based LLDPE film cargoes available. However, no transactions have been recorded for these volumes.
Shenhua Baotou Coal Chemical Co has concluded the auction session for its coal-based PP and PE cargoes 23 January 2025. The following table showed the details of the auction results for prime grade only:
|
Product |
Auction Volume |
Deal Volume |
Auction Prices |
Deal Prices |
Deal % |
||
|
CNY/ton |
USD/ton |
CNY/ton |
USD/ton |
||||
|
Combined and reported by CommoPlast |
|||||||
|
Homo-PP |
- |
- |
- |
- |
- |
- |
- |
|
PPBC |
- |
- |
- |
- |
- |
- |
- |
|
LLDPE |
900 |
0 |
8050 |
$979 |
- |
- |
0.0% |
|
*Auction and Deal volumes are in tonnage *All USD equivalent prices only exclude the 13% value-added tax (VAT). They have not taken into account other costs that might incur in the selling process, i.e. import duty, customs clearances. |
|||||||
Shenhua has reportedly exhausted its January auction allocation, leaving only 900 tons of coal-based LLDPE film cargoes available. However, no transactions have been recorded for these volumes.
Chinese bidders have largely retreated from the market, influenced by declining key futures contracts on the Dalian Commodity Exchange and persistent concerns about a potential post-holiday inventory buildup. Additionally, a sharp price correction in the domestic spot market has dampened interest in auction cargoes, despite a CNY 60/ton discount being offered.
Background:
Shenhua Baotou Coal Chemical Co, the largest coal-based polyolefins producer in China, operates through four subsidiaries: Shenhua Xinjiang Coal-based New Materials Project, Shenhua Yulin Energy Co. Ltd., Shenhua Baotou Coal Chemical Co. Ltd., and Shenhua Ningxia Coal Industry Group (Ningmei).
The company boasts an annual production capacity of 2.65 million tons of PP, 750,000 tons of HDPE/LLDPE, and 570,000 tons of LDPE.
Active in spot trading, Shenhua Baotou also conducts daily auctions for its cargoes from 10 AM - 12 PM on its dedicated online platform, available at https://www.e-chnenergy.com.
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Written by: Kat Yun Yun
Edited by: Muhammad Hafiz